WATCH: Private partnership could bring $170M to Saskatoon arena project

The City of Saskatoon is considering a private partnership with the facility management company OVG360, which could bring in millions of dollars to further the city’s downtown arena project.

According to the city, the proposed partnership is projected to bring in $170 million over 25 years, including $20 million in an up-front capital contribution.

The framework for the private partnership will be discussed at the meeting of the city’s governance and priorities committee next Wednesday.

“We looked for a partner with the necessary experience and credentials that will not only fund and run a successful operation, but also values and understands the importance of social responsibility and leadership in our community,” Dan Willems, the city’s director of technical services, transportation and construction said in a statement.

“The fact that we attracted the interest of a world-class expert in facility management reaffirms the potential and excitement that exists for a Downtown Event and Entertainment District in Saskatoon,” said Willems.

A design rendering of Saskatoon’s proposed downtown arena. (City of Saskatoon)

OVG360 is a Denver-based company with more than 300 client partners including arenas, stadiums, convention centres and performing arts venues.

“With OVG360’s extensive experience in managing premier facilities across North America, we are confident that their innovative approach will bring substantial financial benefits to our city which will help support the funding strategy for the new venues,” Willems added.

“Between this partnership and construction of these venues, we anticipate a significant elevation in the quality and variety of events coming to Saskatoon, attracting world-class entertainment, conventions and cultural activities.”

The city began its search for a private partner in January, which Mayor Charlie Clark called “a critical piece” in getting the project off the ground.

But despite the new partnership announced on Wednesday, the full cost of the proposed arena and surrounding event district, how much the city will contribute to the project, or how it will exactly affect taxpayers is still unknown.

While the city has said it intends to build the major project without increasing property taxes, other revenue sources like fees on hotels, tickets and car rentals have been put forward by Clark.

At the end of this month, the city will release a funding plan that details those sources and compares them to the total project cost. This will show how much the city will need to contribute. Willems said the goal is to keep that contribution within 20-30 per cent of the total costs.

Dan Willems, director of technical services for the City of Saskatoon, shared details of the new partnership for the first time on Wednesday. (Alex Brown/650 CKOM)

“That’s what our report at the end of the month will show is how we’ll generate our sufficient funds without an increase to property tax,” Willems told reporters on Wednesday.

The land where the proposed arena may one day sit has already been purchased by the city. The initial land purchase for Midtown Plaza’s north parking lot added up to $25 million, with an additional $17.3 million spent to purchase more surrounding land.

A study completed last year by the Saskatoon Chamber of Commerce and Downtown Saskatoon indicated that a completed downtown arena could bring a $1.37-billion boost to the city’s economy over 10 years.

Conceptual design renderings of the arena were released by the city last year.

Currently, there is no exact timeline for the project if approved, Willems said, noting that the city will also turn to the provincial and federal government for funding.

“Even if we had all the funding in place today, it would likely be five to six years of construction,” he said.